Aloha Pacific Federal Credit Union is offering a reward checking account called KalaRewards Checking which pays 2.50% APY for balances up to $50,000 (0.10% over) if you meet the typical reward checking requirements AND if you have a home equity line of credit. Without the HELOC, the yield drops to 1.50% APY. The typical monthly reward requirements include: 1) 10 debit card transactions, 2) direct deposit or ACH bill payment, and 3) receive electronic statements. If these are not met the rate falls to 0.10%. There are no monthly fees regardless of meeting the requirements.
This is the first time I've seen a HELOC tied to a reward checking yield. I wonder if we'll see other institutions place similar requirements.
Membership is open to employees and retirees of the City and County of Honolulu and members and employees of the Hawaii Government Employees Association. Please see their membership page for the full details. Membership requires a minimum deposit of $100 in the savings account.
Branches are located in Honolulu, Waipahu and Kaahumanu, Hawaii. The credit union is federally insured by the NCUA (Charter # 1845). It has $415.3 million in assets and 25,460 members.
Thanks to the reader Perturbance who mentioned this reward checking account in the comments.
Other High Yield Reward Checking Accounts
For other reward checking accounts and for more information on these accounts, please refer to the following posts:
- reward checking overview
- reward checking accounts available nationwide
- reward checking accounts around the nation
- 03/01/11: 2.50% APY up to $50K w/HELOC; 1.50% APY up to $50K w/o HELOC; 0.10% over $50K
- 09/06/10: 4.00% APY up to $50K w/HELOC; 3.00% APY up to $50K w/o HELOC
- 03/04/08: 5.00% APY up to $50K w/HELOC; 4.00% APY up to $50K w/o HELOC; 0.50% over $50K